Topic-Business Policy And Competitive Strategy

Shubham Saxena Ashish Kumar Ajit Singh

MAHINDRA & MAHINDRA LIMITED IS THE FLAGSHIP COMPANY OF THE MAHINDRA GROUP

A MULTINATIONAL CONGLOMERATE BASED IN MUMBAI, INDIA

THE COMPANY WAS SET UP IN 1945 IN LUDHIANA AS MAHINDRA & MOHAMMED BY BROTHERS K.C. MAHINDRA AND J.C. MAHINDRA.

THEN IT WAS NAMED AS MAHINDRA AND MAHINDRA GROUP GROUP IS NOW HEADED BY MR.ANAND MAHINDRA

THE

They operate in the key industries that drive economic growth, enjoying a leadership position in utility vehicles, information technology, tractors, and vacation ownership. They have a growing presence in the automotive industry, aerospace, aftermarket, components, consulting services, defense, energy, financial services, logistics, real estate, retail, and two wheelers. They are US $14.4 billion multinational group based in Mumbai, India, we are more than 144,000 people in over 100 countries.

Vision:
To create a fully collaborative environment in which suppliers can deliver exactly what the company needs, when it needs it, and at a competitive cost. We dont have a group-wide mission statement. Our core purpose is what makes all of us want to get up and come to work in the morning -Anand Mahindra MISSION: To create India's largest automobile and automobilerelated products distribution network by providing dealers and customers with the largest choice of unique world-class products and services.

Automotive Farm Equipment Systech Financial Services Information Technology Infrastructure Development After-Market Two-wheelers Mahindra Partners Division Specialty Services

Mahindra and Mahindra Automobiles Founded-1947 Products-Automobiles Revenue-23,803.24 crore (US$4.52 billion) (2011). Net income-2,871.49 crore (US$545.58 million) (2010). Employees-119,900 Parent-Mahindra Group

Mahindra & Mahindra is a major automobile manufacturer of utility vehicles, passenger cars, pickups, commercial vehicles, and two wheelers. Its tractors are sold on six continents. It has acquired plants in China and the United Kingdom, and has three assembly plants in the USA. M&M has partnerships with international companies like Renault SA, France and International Truck and Engine Corporation, USA,International Truck, USA,Ford Motors,USA.

Personal Vehicles -Bolero -REVA Electric Cars -Scorpio -Thar -Verito -Xylo -Actyon -Actyon Sports -Chairman W -Korando -Kyron -Rexton II -Rodius -XUV 500

Commercial Vehicles -Alfa -Gio -Mahindra Navistar Trucks -Bolero Maxi Truck -Genio -Loadking -Maxximo -Tourister Buses

-Mahindra & Mahindra-Automotive Division -Mahindra Graphic Research Design -Mahindra Navistar Automotive -Mahindra Navistar Engines -Mahindra Reva Electric Vehicles -Mahindra Vehicle Manufacturers -Ssangyong Motor Company

Mahindra & Mahindra began manufacturing tractors for the Indian market in the early 1960s. Today, it is one of the top three tractor companies in the world with annual sales totaling more than 150,000 tractors. Tractors -FengShou,Huanghai,Jinma,Swaraj,Arjun, Bhoomiputra,Sarpanch,Shaan,Yuvraj

They entered the Two Wheeler industry in 2008. They developed rapidly since then by focusing on brand-building via new product development guided by consumer insights, strategic partnerships, service orientation, and building scale. Products -Duro ,Flyte ,Kine ,Rodeo ,Stallio,Mojo

In Commercial vehicles-12% In Multi Utility Vehicles-57% In Personal Vehicles-7% In Tractors Section-34% In Two Wheelers-3%

Tata Motors Ashok Leyland Maruti Suzuki India Hyundai Motor India Force Motors Honda TVS

They Follow - Accepting No Limits - Alternative Thinking - Driving Positive Change

Over the years the company has emerged as one of the top players in the world in terms of number of tractors sold. This gives a clear indication that the company's market share is one of its biggest strengths. The company's ability to introduce new products in the market and to generate sales from those new products is a major strength. The reason being that this is very essential for any company, for its survival in the long run. The company has established its brand name in other countries of the world as well. This is evident from the 40% market share that it holds in the 30-40 HP tractors market in the US.

The company is highly dependent on the rural sector, and the rural sector in turn is highly dependent on the monsoons. As a result, if there happen to be bad monsoons (less of rains) for two consecutive years it could have an adverse impact on the demand of tractors for the company.

The government has been trying to strengthen the exports of agricultural products. As a result, the quality of agricultural products necessarily has to be very high. For this, they need better rural and agricultural infrastructure. This might result in an increase in demand for tractors. In India, the penetration of tractors is 10 tractors per 1000 hectares of cropped area, which is much below the world average of 19 tractors for the same. Thus there is scope for the demand to increase.

The company has a history of having invested in unrelated diversifications such as telecom, holiday and resort inns, financial services, etc. which it has hived off as subsidiaries from time to time when these turned unmanageable. This is a cause for concern as such diversifications could divert the company's attention from its core business. It is a dangerous tendency as it leads to destruction of shareholders value. The entry of foreign players in the tractors segment could pose a threat to the company as these foreign players are technically more competitive than Mahindra & Mahindra.

Political Factors Economical Factors Social Factors Technological Factors

Skilled Human Resources High Tech Technology Strong Financial Support High Quality Leadership. Providing Quality Products

Technology High Quality Products Customer Satisfaction Human Resources Empowering Rural India

Advertisements Through Various Media Providing Farming Technology and Equipments to Farmers Corporate Social Responsibility(CSR)
EDUCATION ENVIRONMENT INITIATIVES HEALTH & DISASTER RELIEF ART & CULTURE SPORTS

USP ruggedness and performance. Products that redefined the market. Network of dealers, sales offices, service stations etc. Strong market base in the urban and semiurban areas.

Restructuring of the company. E-business Initiatives Joint ventures. Foreign competition.

Diversification still remains the key for M&Ms global expansion plan and to achieve its hardline target of billion dollar revenues by 2011. With a war chest of $500 million, M&M is also reportedly gearing up for an acquisition in the US in the auto engineering field. It is also hunting for a tractor company in China.

They also use Outsourcing business model for some of the products wherein some materials are outsourced from different firms.For Example in Commercial Vehicles they outsource chasis from KLT industries.

Better Technology. Global Partnerships. Improved Distribution Improved Networking CSR Cost Effectiveness

Plans to enter US market. Expand operations in Germany New plant Mahindra Axe Marketing JV with Nissan

MUV of the Year from the NDTV Profit Car and Bike Awards UV of the Year from the CNBC TV 18 Overdrive Awards MPV of the Year from the Zigwheels Car and Bike Awards. Bild India Golden Steering Wheel for Technology of the Year for its path-breaking FuelSmart system with Micro Hybrid technology